Senate Bill sb1358

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    Florida Senate - 2003                                  SB 1358

    By the Committee on Comprehensive Planning





    316-1812A-03

  1                      A bill to be entitled

  2         An act relating to the use of revenue-sharing

  3         funds; amending s. 218.25, F.S.; authorizing

  4         counties and municipalities to use

  5         revenue-sharing moneys received in excess of

  6         certain guaranteed entitlements as a pledge for

  7         local indebtedness for infrastructure; defining

  8         the term "infrastructure" for purposes of the

  9         act; providing an effective date.

10

11  Be It Enacted by the Legislature of the State of Florida:

12

13         Section 1.  Subsection (1) of section 218.25, Florida

14  Statutes, is amended, and subsection (4) is added to that

15  section, to read:

16         218.25  Limitation of shared funds; holders of bonds

17  protected; limitation on use of second guaranteed entitlement

18  for counties.--

19         (1)  Except as provided in subsections subsection (2)

20  and (4) with respect to the second guaranteed entitlement for

21  counties, local governments may shall not use any portion of

22  the moneys received in excess of the guaranteed entitlement

23  from the revenue sharing trust funds created by this part to

24  assign, pledge, or set aside as a trust for the payment of

25  principal or interest on bonds, tax anticipation certificates,

26  or any other form of indebtedness, and, except as provided in

27  this section, there may not shall be any no other use

28  restriction on revenues shared pursuant to this part.  The

29  state does hereby covenant with holders of bonds or other

30  instruments of indebtedness issued by local governments prior

31  to July 1, 1972, that it is not the intent of this part to

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    Florida Senate - 2003                                  SB 1358
    316-1812A-03




  1  affect adversely the rights of said holders or to relieve

  2  local governments of the duty to meet their obligations as a

  3  result of previous pledges or assignments or trusts entered

  4  into which obligated funds received from revenue sources which

  5  by terms of this part shall henceforth be distributed out of

  6  the revenue sharing trust funds.

  7         (4)  Municipalities may use up to 50 percent of the

  8  moneys received in excess of the guaranteed entitlement, and

  9  counties may use up to 50 percent of the moneys received in

10  excess of the second guaranteed entitlement, from the

11  revenue-sharing trust funds created by this part to assign,

12  pledge, or set aside as a trust for the payment of principal

13  or interest on bonds, tax anticipation certificates, or any

14  other form of indebtedness for infrastructure. The term

15  "infrastructure" means any fixed-capital-outlay expenditure or

16  fixed capital cost associated with the construction,

17  reconstruction, or improvement of public facilities that have

18  a life expectancy of 5 or more years and with any land

19  acquisition, improvement, design, or engineering costs related

20  thereto.

21         Section 2.  This act shall take effect upon becoming a

22  law.

23

24            *****************************************

25                          SENATE SUMMARY

26    Authorizes counties and municipalities to use
      revenue-sharing funds received in excess of certain
27    guaranteed entitlements as a pledge for local
      indebtedness for the payment of principal and interest on
28    bonds and other forms of indebtedness for constructing or
      improving infrastructure. (See bill for details.)
29

30

31

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CODING: Words stricken are deletions; words underlined are additions.